Head to Head Review: Republic Services (RSG) & Nalco Holding Company (NLC)
Nalco Holding Company (NYSE: NLC) and Republic Services (NYSE:RSG) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their profitabiliy, risk, earnings, dividends, analyst recommendations, institutional ownership and valuation.
Insider and Institutional Ownership
61.8% of Republic Services shares are owned by institutional investors. 0.4% of Republic Services shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Republic Services pays an annual dividend of $1.28 per share and has a dividend yield of 2.0%. Nalco Holding Company does not pay a dividend. Republic Services pays out 68.4% of its earnings in the form of a dividend. Republic Services has increased its dividend for 7 consecutive years.
This is a breakdown of recent ratings and target prices for Nalco Holding Company and Republic Services, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Nalco Holding Company||0||0||0||0||N/A|
Republic Services has a consensus price target of $65.88, suggesting a potential upside of 1.64%.
Earnings and Valuation
This table compares Nalco Holding Company and Republic Services’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Nalco Holding Company||N/A||N/A||N/A||N/A||N/A|
|Republic Services||$9.53 billion||2.30||$2.68 billion||$1.87||34.66|
Republic Services has higher revenue and earnings than Nalco Holding Company.
This table compares Nalco Holding Company and Republic Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Nalco Holding Company||6.29%||33.10%||5.83%|
Republic Services beats Nalco Holding Company on 7 of the 10 factors compared between the two stocks.
About Nalco Holding Company
Nalco Holding Company provides water, energy, air and process technologies and services. It provides service for water, energy and air through the worldwide manufacture and sale of specialized service chemical programs. This includes production and service related to the sale and application of chemicals and technology used in water treatment, pollution control, energy conservation, oil production and refining, steelmaking, papermaking, mining, and other industrial processes. It has three segments: Water Services, Paper Services and Energy Services. In July 2010, it acquired all of the business assets of Fabrication Technologies, Inc. (FabTech), which is a North American supplier of enhanced oil recovery (EOR) mixing and injection equipment. In April 2010, it purchased the assets of Res-Kem Corp. and General Water Services Corp. In January 2010, Nalco acquired a 50.1% controlling financial interest in Nalco Africa. In December 2011, it merged with Ecolab, Inc.
About Republic Services
Republic Services, Inc. is a provider of non-hazardous solid waste collection, transfer, disposal, recycling and energy services. The Company’s segments include Group 1, Group 2 and Corporate entities. Its Group 1 and Group 2 segments provide integrated waste management services. Group 1 consists of geographic areas located in the western and portions of the mid-western United States. Group 2 consists of geographic areas located in Texas, the southeastern and portions of the mid-western United States, and the eastern seaboard of the United States. As of December 31, 2016, it operated in 39 states and Puerto Rico through 333 collection operations, 204 transfer stations, 192 active landfills, 64 recycling centers, seven treatment, recovery and disposal facilities, and 10 salt water disposal wells. As of December 31, 2016, it also operated 71 landfill gas and renewable energy projects and had post-closure responsibility for 124 closed landfills.
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